Environment

British family farms face closure risk as Starmer-led US trade deal lifts ethanol tariffs

Sunday, 18 May 2025 12:07AM UTC

New trade agreement removing tariffs on US ethanol threatens the viability of British family farms, sparking fears among farmers and industry leaders about long-term impacts on rural communities, food security, and agricultural standards.

More British family farms could face closure as they struggle to compete with US imports, a potential consequence of a new trade deal brokered under the leadership of Sir Keir Starmer. Commentary from industry experts, including farmer James Mills, reveals the anxiety felt within the agricultural sector regarding the implications of the agreement. Mills, who operates a 500-acre arable farm near York, expressed grave concerns that lifting tariffs on US ethanol imports will undermine local agriculture. "They're sacrificing an industry they don't understand," he stated, highlighting a perception that agriculture, despite its critical role in food security and rural economies, doesn't factor significantly into the government's economic priorities.

The core elements of the trade agreement will see Britain's current tariffs on US ethanol, which stand at 19%, eliminated. In exchange, US farmers will gain access to the UK market for a quota of 13,000 tonnes of beef that meets UK welfare standards. This arrangement poses significant risks, according to Mills, as he described the reliance of his operation on selling crops, such as wheat, to local bioethanol plants that would now be threatened by cheaper US imports. He pointed out that the financial strain could push farmers to export their produce, potentially at lower profit margins that would make local farming unsustainable. The repercussions of such changes extend beyond individual farms; the loss of family-run businesses would impact entire communities, erasing agricultural skills and localised food systems that have been integral to British culture.

National Farmers Union President Tom Bradshaw has echoed these sentiments, stating that the agricultural sector may bear the brunt of tariff reductions aimed at benefitting other sectors. Major players in the agribusiness sector, including the CEOs of Associated British Foods and Ensus, have indicated that they may be forced to shut down their operations in the UK, citing a landscape shaped by regulations favouring overseas producers and a loss of domestic competitive edge.

Concerns are not limited to arable farming; livestock farmers, like Sally Hodgson from Derbyshire, fear that American meat products, which do not adhere to the UK's high welfare and environmental standards, could flood the market, undercutting local producers. Hodgson, who runs a small-scale operation based on sustainable practices, articulated the pride she derives from her produce, which is deeply connected to local traditions and ecology. However, the reality of cheaper US imports threatens to diminish that connection, making it increasingly challenging for her business to thrive.

Adding another layer of complexity, economic discussions highlight the evolving landscape of US trade policy under the Trump administration. Analysts note that the recent US-UK agreement reflects an unpredictable approach, marked by ad hoc negotiations that often compromise established trade norms. Critics argue that these moves undermine the integrity of the global trading system and could harm long-standing partnerships, particularly within the EU, as the UK navigates its post-Brexit identity.

As the UK negotiates its future trade relations with both the US and the EU, policymakers face a considerable challenge. The government's assurance that it will uphold strict food standards appears at odds with the realities of trade agreements that favour US access to UK markets. With farmers and industry advocates increasingly vocal about their fears, a push for greater regulatory alignment with the EU and the preservation of British agricultural standards may become essential in maintaining the integrity of the farming sector.

British farmers remain clear: without a concerted effort that prioritises their needs and those of the agriculture sector, the future of family farming in the UK could be permanently altered. The sentiments echoed by Mills and Hodgson are not simply concerns for farmers but warnings signalling the potential cost to community and cultural identity entwined with UK agriculture.

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Source: Noah Wire Services

More on this

https://www.express.co.uk/news/uk/2056363/trump-starmers-trade-deal-destroy-family-farms - Please view link - unable to able to access data
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https://www.ft.com/content/21b2fcc5-bfe8-4b27-adab-702c4eb0f0c4 - Brexit continues to have a significant and adverse impact on Britain's trade with the EU, according to research by Aston University. The study found that annual exports to the EU are 17% lower, and imports are 23% behind where they might have been without Brexit. The effects have worsened through 2023, stifling the UK's trade competitiveness. Conducted by Professor Jun Du, the report highlights the ongoing bureaucratic barriers affecting trade and suggests that larger companies in sectors like autos and aerospace are more resilient. The research calls for more ambitious government efforts to improve trade relations with the EU, including regulatory alignment and specific sectoral negotiations. Pro-EU groups advocate for rejoining the EU single market, but the Labour Party has ruled this out, focusing instead on other strategies to reduce trade barriers. The findings emphasize the need for urgent action to prevent further economic decline, urging the government to leverage digital technologies and streamline border processes to mitigate Brexit's impacts.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 6

Notes: Although the narrative presents current concerns about trade agreements, there is no clear indication that it is responding to very recent developments. The mention of Trump and Sir Keir Starmer suggests a blend of historical and ongoing issues, but without specific dates, it's difficult to assess its freshness.

Quotes check

Score: 8

Notes: The quotes from James Mills and Sally Hodgson appear to be original and directly related to the article's context. There is no indication that these quotes are recycled from previous publications.

Source reliability

Score: 4

Notes: The narrative originates from the Daily Express, which is known for its sensationalist reporting style. While it may report on real issues, the presentation can be biased or exaggerated.

Plausability check

Score: 6

Notes: The concerns about trade agreements affecting British family farms are plausible, given historical tensions around trade policies. However, specific claims about the impact on individual farms and the broader agricultural sector lack concrete evidence and data.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative raises plausible concerns about the impact of trade agreements on British family farms, but the reliability of the source and lack of concrete evidence make it difficult to verify all claims. The freshness of the content is moderate, and the originality of the quotes is a positive aspect.

British agriculture
US trade deal
family farms
Keir Starmer
tariffs
food standards